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Technology Stocks : Winstar Comm. (WCII) -- Ignore unavailable to you. Want to Upgrade?

To: Bernard Levy who wrote (11930)	5/20/2000 1:55:00 PM
From: JMD	Read Replies (1) \| Respond to of 12468

Hi Bernard, I am bewildered not to have see more (any?) discussion in the press/Congress at the FOMC's explicit attack on stock market valuation levels. Unless I was asleep during the better part of my undergraduate/graduate economics classes, the Fed has zero legal authority to deal with the stock market, a privilege reserved for the SEC. Like you, I have little doubt that the cumulative effect of interest rate increases will materially decrease economic activity. One more, and I think that a recession is inevitable. But I am not resurfacing the old "interest rates are a crude meat axe to deal with the economy" debate, as much as I am astounded that the Fed seems suddenly to have assumed that it's O.K. for them throw the axe at the market. [And if somehow it is suddenly O.K., then for god's sake, jack up margin requirements and ELIMINATE margin as an option for IPOs if the intent is to take the steam out of a market judged to be 'too high'.] That however begs the question. Have you seen anyone else raising this issue? best regards, mike doyle